What You Need to Know About Office Depot's (ODP) CEO Pick

Markets were pleased with Office Depot's CEO pick as shares gained 3.8%. Should you be?

NEW YORK (TheStreet) -- Office Depot (ODP) has named Roland Smith as its new CEO and Chairman, following its successful merger with OfficeMax (OMX). Smith, most recently chief executive of Delhaize America (DEG), has been picked for his merger experience and expertise in saving businesses in crisis.

"Smith comes to Office Depot, Inc. with a strong retail track record of increasing operating profit, managing complex integrations, directing corporate turnarounds, and transforming companies for future success," the company wrote in a statement.

In his most recent role as CEO of the U.S. arm of Delhaize Group, Smith was responsible for consolidating the company's supermarket chains such as Food Lion and Hannaford. He also led the sale of the less profitable Sweetbay, Reid's and Harveys brands to Bi-Lo Holding for $265 million in May.

Prior to that, Smith orchestrated the successful merger of Wendy's and Arby's in 2008 during his tenure as CEO of Arby's and post-merger The Wendy's Company (WEN).

One of his first decisions in the top job will be where to locate the merged corporate headquarters: in OfficeMax's Illinois offices or Office Depot's in Boca Raton, Fla. As The Wall Street Journal notes, it could come down to which state offers the best tax position (Illinois currently has one of the highest tax rates in the U.S. at around 9.5% compared to Florida's 5.5%).

A week ago, the stationery stores completed their long-awaited merger, finalizing plans set in motion when the companies announced their intentions in February. The merger is expected to create an office supplies powerhouse with combined annual sales of around $17 billion.